BILLS for long-term care in old age are to be capped at £75,000 in England, it was announced yesterday.

Health Secretary Jeremy Hunt told the Commons that the “historic” reforms would save thousands of people from having to sell their home to pay for care. The £1billion move will be funded by dragging more people into the inheritance tax net.

But campaigners voiced disappointment at the level of the cap – more than double the £35,000 recommended by the independent Dilnot Commission in 2011.

And thousands more will be hit with inheritance tax bills after it was announced that the £325,000 threshold – £650,000 for couples – at which it kicks in at 40 per cent will be frozen for three years from 2015 – effectively scrapping the Conservatives’ election pledge to raise the threshold to £1million.

These plans will give certainty and peace of mind about the cost of care, making sure we can all get the support we need without facing unlimited costs

Health Secretary Jeremy Hunt

However, Mr Hunt also announced that the assets threshold – the amount someone can be worth before having to pay for all care – would rise from £23,250 to £123,000.

Mr Hunt told MPs: “These plans will give certainty and peace of mind about the cost of care, making sure we can all get the support we need without facing unlimited costs.”